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New car supply still tight due to global production cut

“They don’t have that much out here. They got used cars if you’re looking for used cars, but as far as the 2021’s, they’re going like hotcakes,” said Penny.

METAIRIE, La. — If you’re thinking of selling your used car, many local dealerships say now is a great time to do so. An ongoing, global supply shortage is forcing many automakers to cut back on their production of new cars. 

We revisited Lakeside Toyota on Causeway Boulevard in Metairie to see how that shortage is affecting their sales and business strategy. We first visited the dealership in the spring. During our latest visit, we met Penny. She just bought a brand new 2022 Toyota Corolla. It’s not an impulse buy. It’s a necessity.

“I’m an uber driver, and I get around the city a lot. I go everywhere and I just wore out my old Corolla,” said Penny.

Finding the new car she wanted wasn’t easy. Before buying from Lakeside Toyota, Penny had to go hunting at several dealerships.

“They don’t have that much out here. They got used cars if you’re looking for used cars, but as far as the 2021’s, they’re going like hotcakes,” said Penny.

“As a matter of fact Camrys, I’ve got 12 and typically we’ve got 60 to 70 of those,” said Troy Campise.

Campise is the general sales manager at Lakeside Toyota. He said they don’t have trouble moving new cars off the lot. There’s just not enough of them to sell. Two years ago, his new car inventory hovered around 400. Today, it’s at 84. 

Due to that ongoing shortage of semi-conductor microchips for new cars, Toyota recently announced its cutting global production by 40-percent. That will likely affect future sales, but Campise is keeping his mind on the present.

“I can’t worry about the future. You can’t do that. We have to work with what we have, and we have to be optimistic. We have to keep all our employees employed and safe, that’s what we need to do,” said Campise.

The dealership can only sell what it has. Until the supply of new cars improves, it’s shifting its focus here to its used car lot.

“It’s a great time for people to sell their car. Any car dealer wants to buy a used car right now,” said Campise.

Penny traded in her old car for her new ride. Considering how few cars are out there, she’s feeling pretty lucky.

“Now I really got to work hard because I got a new car, and I have I to pay for it,” said Penny.

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